BALA CYNWYD, Pa, April 8, 2002 (PRIMEZONE) -- A shareholder sued NewPower Holdings ("NewPower" or "the Company") (NYSE:NPW) claiming that the company misled investors about its business and financial condition, as alleged in a complaint filed by the law firm of Schiffrin & Barroway, LLP.
The complaint was filed in the U.S. District Court for the Southern District of New York and seeks damages for violations of federal securities laws on behalf of all investors who bought NewPower Holdings securities between October 5, 2000 and December 5, 2001 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of NewPower Holdings and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our Website at http://www.sbclasslaw.com/cgi/signup.cgi.
The complaint alleges that NewPower Holdings and certain of its officers and directors with issuing false and misleading statement concerning its business and financial condition. Specifically, the complaint alleges that the Registration Statement and Prospectus for NewPower's public offering on October 5, 2000 was false and misleading in several ways, including misrepresentations and omissions concerning the adequacy of risk management systems put in place in conjunction with NewPower affiliate, Enron Energy Services, Inc. ("EES"), and the true nature and purpose of certain related party transactions, including transactions pursuant to which Enron attempted to hedge its investment in NewPower through use of a partnership known as "Raptor III," which was conceived and designed by Enron CFO Andrew Fastow. Claims regarding these misrepresentations and omissions have been asserted under Section 11 of the Securities Act against the underwriters of the October 5, 2000 initial public offering and against those persons who were directors (or about to become directors) of NewPower at the time of that offering, including NewPower's top executives, CEO H. Eugene Lockhart, Chairman Lou L. Pai and CFO William I. Jacobs.
The complaint alleges in this regard that NewPower Holdings and certain of its officers and directors misrepresented or failed to disclose: (I) that the Company had not adopted effective and appropriate hedging strategies against volatility of commodity prices; (ii) that the Company was on course to achieve its financial goals and had sufficient liquidity to do so; and (iii) that certain forward contracts with EES posed little risk of loss when in truth and in fact they were driving the Company toward insolvency, and were largely structured to protect and enrich Enron, NewPower's controlling shareholder.
If you purchased NewPower Holdings securities between October 5, 2000 and December 5, 2001, you may be a member of the class and have until April 29, 2002 to move the court to become a lead plaintiff. To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our Website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at http://www.primezone.com/ca